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Insurance Premium attracts 18% GST under SAC code 997131. Calculate the exact tax below.
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Insurance Premium is classified under SAC code 997131 for GST purposes. The Services Accounting Code (SAC) is used to classify services under GST. This code must be mentioned on GST invoices when billing for insurance premium.
Life and general insurance premiums attract 18% GST since July 2017. There are ongoing demands to reduce GST on health and life insurance to 5% or exempt them.
Yes, input tax credit (ITC) is available on insurance premium for registered businesses. If you purchase insurance premium for business purposes, the GST paid (18%) can be claimed as ITC against your output tax liability, subject to conditions under Section 16 of the CGST Act.
Here are example calculations showing GST on insurance premium at 18% for common price points:
| Base Price | GST (18%) | CGST (9%) | SGST (9%) | Total |
|---|---|---|---|---|
| ₹5,000 | ₹900 | ₹450 | ₹450 | ₹5,900 |
| ₹10,000 | ₹1,800 | ₹900 | ₹900 | ₹11,800 |
| ₹25,000 | ₹4,500 | ₹2,250 | ₹2,250 | ₹29,500 |
| ₹50,000 | ₹9,000 | ₹4,500 | ₹4,500 | ₹59,000 |
More in Services:
Other items at 18% GST:
Insurance Premium attracts 18% GST in India under SAC code 997131. For intra-state sales, this is split into 9% CGST and 9% SGST. For inter-state sales, 18% IGST applies.
The SAC code for Insurance Premium is 997131. SAC (Services Accounting Code) is used to classify services under GST. This code should be mentioned on all GST invoices.
To add 18% GST on insurance premium: GST Amount = Base Price × 18/100. Total = Base Price + GST Amount. For example, on ₹10,000: GST = ₹1,800, Total = ₹11,800.
Yes, registered businesses can claim input tax credit on insurance premium purchased for business purposes. The 18% GST paid can be offset against your output GST liability, subject to Section 16 conditions of the CGST Act.
Life and general insurance premiums attract 18% GST since July 2017. There are ongoing demands to reduce GST on health and life insurance to 5% or exempt them.